Can a mortgaged vehicle change license plates in another location?
4 Answers
A mortgaged vehicle cannot change license plates in another location. Mortgaged vehicles cannot be transferred, mortgaged, or used for loans. Changing to an out-of-town license plate is equivalent to transferring the vehicle's ownership, which is not allowed for loan-financed vehicles. The relevant details about mortgaged vehicles are as follows: Definition of a mortgaged vehicle: Mortgaged car purchase refers to a car buyer who first pays a portion of the down payment, with the remaining amount provided by the lender in installments. Required documents include: original ID card, household register, or other valid residency documents, along with their copies; proof of occupation and economic income; car purchase agreement, contract, or letter of intent signed with the dealer; other documents required by the cooperating institution. Application methods for mortgaged vehicles: To increase car sales, the government, in collaboration with financial institutions, has initiated personal loan car purchase services. Currently, there are two main methods for personal car loans in the financial market: property mortgage car loans (using property as collateral). Property mortgage car loans generally allow a maximum loan term of 5 years, with a down payment of at least 30%. Interest rates are primarily determined based on the loan type and the borrower's personal qualifications. Personal credit car loans (unsecured, generally requiring good credit and stable income) usually allow a loan term of up to 5 years, with a down payment of at least 30%.
I've encountered a similar situation before when trying to change license plates for a financed car across regions. It turned out I had to coordinate with the loan bank first. The bank considers the car as collateral, and changing plates involves ownership issues, so they required me to submit an application and possibly provide additional guarantees. Then, I had to go back to the vehicle management office in the original plate location to complete the release of mortgage procedures, obtain the release certificate, before applying for new plates at the vehicle management office in the new location. The whole process was quite cumbersome, requiring preparation of documents like ID card, loan contract, and vehicle registration certificate. That time it took me almost ten days, mainly because the bank's review was slow, and I had to make two trips to the vehicle management office. I recommend calling ahead to inquire about the required procedures from both the bank and the vehicle management office to avoid delays in getting on the road.
From my experience, it is feasible to transfer the license plate of a mortgaged vehicle to another location, but bank approval is mandatory. Since the vehicle serves as loan collateral, the bank needs to protect its interests and typically requires submitting a release application form for review. The procedure involves first obtaining a release certificate from the vehicle management office at the original registration location, bringing all necessary documents, and then completing the re-registration and plate transfer at the new location's vehicle management office. This process is not only cumbersome but also risky: skipping this step may invalidate the license plate or even trigger loan default clauses. I recommend consulting the bank's customer service in advance to understand the specific process and timeline—usually allowing about a week to ensure full compliance.
Changing license plates can be done in a different location, but for financed vehicles, bank approval is required first. I've gone through this process before—the bank will issue a release document, which then needs to be stamped at the original vehicle management office before transferring to the new location for plate replacement. It's not only time-consuming but also involves some service fees. Remember to bring all required documents and don't delay the process too long.
